Andorra maintains a highly regulated real estate market where legal precision is paramount. When Selling Property in Andorra as a Non-Resident the process is streamlined by the mandatory involvement of local professionals who ensure compliance with Andorran law.
1. The Legal and Regulatory Framework
In Andorra, property transactions are formal and must be executed as a public deed (escriptura pública) before a government-appointed Notary Public.
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Mandatory Notary Involvement: The notary acts as an impartial guarantor. They are responsible for conducting title searches, confirming the property is free of encumbrances (mortgages, liens, or legal disputes), and ensuring the sale is legally binding.
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Foreign Investment Context: While you as a seller do not need to be a resident, note that the buyer (if a non-resident) will require foreign investment authorization from the Andorran government.
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Remote Transactions: You can sell your property without being physically present by granting a Power of Attorney (PoA) to a trusted representative (such as a legal advisor) who can sign the deed on your behalf. This PoA must typically be notarized and apostilled.
2. Documentation Requirements
To finalize a sale, you must provide the following documentation to your notary:
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Proof of Ownership: Your original title deed (escriptura pública).
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Habitability Certificate (Certificat d’habitabilitat): A mandatory document issued by a local architect confirming the property meets residential standards.
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Non-Debt Certificates: Official proof that all municipal property taxes and community (condominium) fees are paid in full.
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Energy Efficiency Certificate: A required disclosure document for the property.
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Identification: A valid passport and, if applicable, marital status documents (e.g., marriage certificate) if the property is considered marital property.
3. Financial Considerations and Taxation
Andorra’s tax framework has seen updates in 2025–2026 to curb speculation and encourage long-term ownership.
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Capital Gains Tax (CGT): Sellers are subject to tax on the profit realized. Recent legislation introduces a surcharge to combat short-term speculation:
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Within 2 years: 15% (10% base + 5% surcharge).
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2 to 5 years: 10%.
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After 5 years: Progressive reductions apply.
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After 10 years: The capital gain is generally exempt from tax.
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Repatriation: While you can transfer proceeds abroad, Andorran banks will require documentation (the sale deed and proof of tax payment) to comply with Anti-Money Laundering (AML) regulations.
4. Preparing for Sale: A Checklist
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Engage Local Experts: Work with an agent registered with the AGIA (Col·legi Professional d’Agents i Gestors Immobiliaris d’Andorra) to ensure professional marketing and coordination.
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Organize Mandatory Certificates: Begin the process of obtaining your habitability and energy certificates early, as these require inspection by local professionals.
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Clear All Liabilities: Ensure there are no outstanding debts with the Comú (municipality) or the building’s community of owners.
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Preliminary Agreement (Promesa de compravenda): Once an offer is accepted, you will sign a binding commitment to sell. The buyer will typically pay a non-refundable 10% deposit at this stage.
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Coordinate with a Bank: Since the final payment is often handled via bank transfer through a notary, ensure you have an Andorran bank account or have coordinated with your chosen notary to receive funds securely.
Disclaimer: This guide is for informational purposes only. Andorran real estate and tax laws, particularly following the 2026 legislative reforms, are complex. Always consult with a qualified local notary or legal professional regarding your specific transaction.
Are you currently in the process of gathering your property’s legal documentation, or are you looking for guidance on finding a reputable notary or agent in Andorra to assist you?
